Cerberus Capital Management, owner of No. 5 grocer Albertsons, has agreed to buy No. 2 grocer Safeway in a deal valued over $9 billion, Forbes reports.
Officials with Safeway say the potential union will allow the grocer to continue improving customers’ shopping experience.
“Safeway has been focused on better meeting shoppers’ diverse needs through local, relevant assortment, an improved price/value proposition and a great shopping experience that has driven improved sales trends,” Safeway CEO Robert Edwards said in a statement. “We are excited about continuing this momentum as a combined organization.”
For their part officials with Albertsons say the merger will create opportunities for the stores to offer a cutting-edge shopping experience for customers.
“This transaction offers us the opportunity to better serve customers by adapting more quickly to evolving shopping preferences in diverse regions across the country,” Bob Miller, CEO of Albertsons, tells Forbes. “Together, we will be able to respond to local needs more quickly and deliver outstanding products at the lowest possible price, more efficiently than ever before.”
But don’t pop that champagne just yet. There seems to be another suitor waiting in the wings.
Kroger, the country’s largest grocer, is reportedly considering making its own offer for Safeway. Last year, Kroger outbid Cerberus to buy the Harris Teeter chain of supermarkets for $2.4 billion.